The Analytical Overview of the Main Currency Pairs on 2018.03.06

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23625

Open: 1.23350

% chg. over the last day: +0.15

Day's range: 1.23320 – 1.23384

52 wk range: 1.0492 – 1.2537

Yesterday there was a variety of trends on the EUR/USD currency pair. The US dollar is under pressure due to the threat of trading war beginning. However, the US Congress representatives argue against the introduction of steel and aluminum import duties. At the moment, the technical pattern is ambiguous. The quotes are being traded in the range of 1.23300-1.23600. The US dollar is supported by optimistic data on business activity in the non-production sector of the country. Positions need to be opened from the key support and resistance levels.

The news feed on 2018.03.06:

- Factory orders volume in the US at 17:00 (GMT+2:00).

The indicators signals are different. The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell EUR/USD.

Trading recommendations

Support levels: 1.23300, 1.23000, 1.22700

Resistance levels: 1.23600, 1.23900, 1.24200

If the price fixes below 1.23300, the EUR/USD quotes are expected to decline. The movement is tending potentially to 1.23000-1.22700.

Alternative option. If the price fixes above the 1.23600 mark, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to 1.23900-1.24200.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.37936

Open: 1.38475

% chg. over the last day: +0.38

Day's range: 1.38180 – 1.38256

52 wk range: 1.2106 – 1.4345

During yesterday's trading, the GBP/USD currency pair grew. The pound was supported against the positive statistical data. Activity in the service sector accelerated in February to 54.5. At the moment, the trading instrument is consolidating in the range of 1.38000-1.38500. Investors expect additional drivers. Positions should be opened from the key support and resistance levels.

The news feed on the UK economy is calm.

Indicators don’t show accurate signals. The price is between 50 MA and 200 MA, which are dynamic support and resistance levels.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.38000, 1.37500, 1.37200

Resistance levels: 1.38500, 1.39000, 1.39400

If the price fixes below the round level of 1.38000, it is necessary to consider sales of GBP/USD. The movement is tending potentially to 1.37500-1.37200.

Alternative option. If the price fixes above 1.38500, the GBP/USD currency pair is expected to grow. The movement is tending potentially to the round level of 1.39000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28650

Open: 1.29648

% chg. over the last day: +0.73

Day's range: 1.29824 – 1.29943

52 wk range: 1.2059 – 1.3795

Yesterday, there were aggressive purchases on the USD/CAD currency pair. The US dollar was supported by optimistic data on business activity in the non-production sector of the country. The USD/CAD quotes have grown by almost 100 points. At the moment, the trading instrument is in a flat. In the near future, technical correction is expected. The key support and resistance levels are: 1.29600 and 1.30000, respectively. We recommend opening positions above/below these marks.

The news feed on 2018.03.06:

- Ivey Purchasing Managers Index at 17:00 (GMT+2:00).

Indicators show the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/CAD.

Trading recommendations

Support levels: 1.29600, 1.29100, 1.28400

Resistance levels: 1.30000, 1.30500

If the price fixes above the round level of 1.30000, the USD/CAD currency pair is expected to grow. The movement is tending potentially to 1.30300-1.30600.

An alternative may be the correction of the USD/CAD quotes to the level of 1.29100-1.28800.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 105.487

Open: 106.181

% chg. over the last day: +0.65

Day's range: 106.016 – 106.153

52 wk range: 107.33 – 115.51

Yesterday, there were quite aggressive purchases on the USD/JPY currency pair. The growth of quotes exceeded 90 points. Concerns of investors about the trading war weakened, which caused a decline in demand for safe assets. The trading instrument has the potential for further correction. The key support and resistance levels are: 105.900 and 106.250 respectively. We recommend opening positions from these levels.

The news feed on Japan's economy is calm.

The price has fixed between 50 MA and 200 MA, which are dynamic support and resistance levels.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is close to the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 105.900, 105.600, 105.300

Resistance levels: 106.250, 106.600, 107.00

If the price fixes below the support level of 105.900, the USD/JPY quotes are expected to decline. The movement is tending potentially to 105.600-105.300.

Alternative option. If the price fixes above the 106.250 level, it is necessary to consider purchases of USD/JPY. The target movement level is 107.00.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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